“The Shakti scheme, which provides free travel for women on state-owned buses, will remain unaffected. Even with the hike, Karnataka’s fares will remain lower than those in Andhra Pradesh, Telangana, and Maharashtra,” says minister HK Patil.
Published Jan 02, 2025 | 7:18 PM ⚊ Updated Jan 02, 2025 | 7:58 PM
DCM DK Shivakumar flagging off KSRTC's new Airavat Club Class 2.0 service. (DKShivakumar/X)
The Karnataka government has approved a 15 percent increase in bus fares across all State Road Transport Corporations (SRTCs). The increased fare will apply to all SRTCs, including Bengaluru Metropolitan Transport Corporation (BMTC), effective 5 January. The decision was made during a cabinet meeting chaired by Chief Minister Siddaramaiah on Thursday, 2 January.
Speaking to reporters, Minister HK Patil highlighted rising costs as the primary reason for the fare hike. “In 2015, diesel was priced at ₹60.98 per litre. This has now increased by nearly 50 percent. Back then, SRTCs spent ₹9.16 crore on fuel, which has risen to ₹13.21 crore. The daily manpower expenditure has also climbed from ₹12.85 lakh to ₹16.30 crore. Overall, SRTCs face a daily financial burden of ₹9.56 crore,” he said.
Karnataka runs four state transport corporations – Karnataka State Road Transport Corporation (KSRTC), North-west Karnataka Road Transport Corporation (NWKRTC), Kalyana Karnataka Road Transport Corporation (KKRTC) and BMTC.
The cabinet debated fare increases of 13 percent and 15 percent before opting for the higher adjustment.
The Shakti scheme, which provides free travel for women on non-AC state-owned buses, will remain unaffected. Even with the hike, Karnataka’s fares will remain lower than those in Andhra Pradesh, Telangana, and Maharashtra, Patil noted.
The KSRTC Workers’ Union has long called for fare increases to ease the financial crisis facing SRTCs. The corporations themselves proposed fare hikes of 10 percent to 30 percent.
This is the first fare increase under the incumbent Congress government.
SRTCs are grappling with liabilities of ₹5,492 crore, including unpaid provident funds, fuel costs, and arrears for retired employees. To alleviate the burden, the government has taken a ₹2,000 crore loan. Operational costs and delays in payments for the Shakti scheme have exacerbated the financial strain.
Introduced on 11 June 2023, the Shakti scheme was a flagship initiative of the Congress-led government upon taking office.
Minister Patil assured that the government has allocated ₹2,000 crore to address pending liabilities, including provident funds and fuel bills, and will intervene further if necessary. The decision to hike bus ticket fares is already drawing severe criticism from Opposition parties – BJP and JD(S).
(Edited by Dese Gowda with inputs from Mahesh M Goudar)
